Genesco (NYSE:GCO) Updates FY 2027 Earnings Guidance

Key Points

• Genesco raised its FY 2027 adjusted EPS outlook to $2.00–$2.40, versus analysts’ consensus of $2.25, while maintaining revenue guidance of approximately $2.4 billion.
• The latest quarter beat expectations, with EPS of -$0.83 versus -$1.37 expected and revenue of $529.9 million versus $527.3 million. Profitability improved significantly, though results benefited from roughly $22.5 million in tariff refunds and interest.
• Sales trends were mixed: Journeys and Johnston & Murphy comparable sales grew 2% and 4%, respectively, but total revenue declined 3% year over year. Analysts maintain a consensus Hold rating with an average price target of $36.67.

Genesco (NYSE:GCO - Get Free Report) updated its FY 2027 earnings guidance on Thursday. The company provided EPS guidance of 2.000-2.400 for the period, compared to the consensus estimate of 2.250. The company issued revenue guidance of $2.4 billion-$2.4 billion, compared to the consensus revenue estimate of $2.4 billion.

Genesco Stock Performance

Shares of GCO traded up $0.76 during mid-day trading on Thursday, hitting $34.28. 447,131 shares of the company's stock were exchanged, compared to its average volume of 229,993. Genesco has a 52 week low of $21.92 and a 52 week high of $43.60. The stock's 50-day simple moving average is $35.49 and its 200-day simple moving average is $33.30. The firm has a market cap of $380.75 million, a price-to-earnings ratio of 19.82 and a beta of 1.80. The company has a quick ratio of 0.37, a current ratio of 1.83 and a debt-to-equity ratio of 0.08.

Genesco (NYSE:GCO - Get Free Report) last posted its quarterly earnings data on Thursday, September 3rd. The company reported ($0.83) EPS for the quarter, topping analysts' consensus estimates of ($1.37) by $0.54. The firm had revenue of $529.86 million for the quarter, compared to analyst estimates of $527.26 million. Genesco had a return on equity of 2.66% and a net margin of 0.80%.During the same quarter last year, the company earned ($1.79) EPS. Genesco has set its FY 2027 guidance at 2.000-2.400 EPS. On average, equities research analysts expect that Genesco will post 2.25 EPS for the current year.

Wall Street Analyst Weigh In

GCO has been the subject of a number of research reports. Weiss Ratings cut shares of Genesco from a "hold (c)" rating to a "sell (d+)" rating in a report on Friday, June 12th. Truist Financial set a $40.00 price objective on Genesco in a report on Friday, May 29th. Seaport Research Partners lowered Genesco from a "buy" rating to a "neutral" rating in a research report on Wednesday, May 27th. Zacks Research cut Genesco from a "strong-buy" rating to a "hold" rating in a report on Friday, July 31st. Finally, Wall Street Zen downgraded Genesco from a "buy" rating to a "hold" rating in a research report on Saturday, June 13th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $36.67.

Insider Buying and Selling at Genesco

In related news, Director Gregory Sandfort acquired 2,958 shares of the business's stock in a transaction that occurred on Thursday, July 9th. The shares were bought at an average cost of $33.80 per share, with a total value of $99,980.40. Following the completion of the purchase, the director directly owned 29,172 shares in the company, valued at $986,013.60. The trade was a 11.28% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available at this link. Insiders own 23.11% of the company's stock.

Key Headlines Impacting Genesco

Here are the key news stories impacting Genesco this week:

• Positive Sentiment: Earnings beat estimates: Genesco reported adjusted EPS of -$0.83, ahead of the consensus estimate of -$1.37 and substantially better than the prior-year loss of $1.79 per share. Revenue of approximately $529.9 million also exceeded estimates of $527.3 million. Genesco boosts fiscal 2027 adjusted EPS outlook
• Positive Sentiment: Profitability improved sharply: GAAP net income was $3.5 million, compared with an $18.5 million loss a year earlier. Gross margin rose to 51.4% from 45.8%, helped in part by tariff refunds, while operating income improved to $3.6 million from a $14.4 million loss. Genesco fiscal 2027 second-quarter results
• Positive Sentiment: Raised outlook: Management lifted its fiscal 2027 adjusted diluted EPS forecast to the high end of its $2.00–$2.40 range. It also plans approximately 95 Journeys 4.0 store openings, signaling confidence in the brand’s turnaround and growth potential. Genesco fiscal 2027 outlook and Journeys openings
• Neutral Sentiment: Mixed sales trends: Total revenue declined 3% year over year and comparable sales fell 1%. However, Journeys comparable sales increased 2% and Johnston & Murphy comparable sales rose 4%, partially offsetting a 6% decline in comparable e-commerce sales. Genesco second-quarter sales and guidance
• Negative Sentiment: Quality of earnings remains a consideration: The quarter benefited from approximately $22.5 million in tariff refunds, including interest. Investors may question how much of the margin and profit improvement is sustainable once this one-time benefit is excluded.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of GCO. BNP Paribas Financial Markets boosted its stake in shares of Genesco by 92.3% in the 3rd quarter. BNP Paribas Financial Markets now owns 1,960 shares of the company's stock valued at $57,000 after purchasing an additional 941 shares during the last quarter. Group One Trading LLC bought a new position in Genesco during the fourth quarter worth $26,000. Russell Investments Group Ltd. lifted its holdings in Genesco by 6.3% in the third quarter. Russell Investments Group Ltd. now owns 18,966 shares of the company's stock valued at $550,000 after buying an additional 1,121 shares during the period. Quarry LP lifted its holdings in Genesco by 182.2% in the third quarter. Quarry LP now owns 1,964 shares of the company's stock valued at $57,000 after buying an additional 1,268 shares during the period. Finally, Jones Financial Companies Lllp bought a new stake in Genesco during the first quarter valued at $26,000. Institutional investors and hedge funds own 94.51% of the company's stock.

About Genesco

Genesco Inc is a Nashville, Tennessee-based retailer, wholesaler and licensee specializing in branded footwear, headwear, apparel and accessories. Through its portfolio of retail chains, wholesale distribution channels and licensing agreements, Genesco brings a range of product offerings to consumers in North America and Europe.

The company's retail segment includes specialty chains such as Journeys, which targets fashion-focused teens and young adults in the United States and Canada, and Schuh, a footwear retailer with locations in the United Kingdom and Ireland.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source